Revenue growth has recovered to 9.0% in 2026Q2, yet operating margins have simultaneously contracted to 4.2% from a 7.4% peak in 2024Q2, indicating significant scaling challenges.
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 | Oct'07 | Oct'06 | Oct'05 | Oct'04 | Oct'03 | Oct'02 | Oct'01 | Oct'00 | Oct'99 | Oct'98 | Oct'97 | Oct'96 |
|---|
| Sales/Revenue | 57.42B | 55.3B | 53.56B | 53.72B | 62.91B | 63.46B | 56.64B | 58.76B | 58.47B | 52.06B | 48.24B | 51.46B | 56.65B | 112.3B | 120.36B | 127.25B | 126.03B | 114.55B | 118.36B | 104.29B | 91.66B | 86.7B | 79.91B | 73.06B | 56.59B | 45.23B | 48.87B | 42.37B | 39.42B | 35.47B | 38.42B |
| Revenue Growth % | 5.74% | 3.24% | -0.3% | -14.61% | -0.87% | 12.04% | -3.6% | 0.49% | 12.33% | 7.91% | -6.27% | -9.16% | -49.55% | -6.7% | -5.41% | 0.96% | 10.02% | -3.22% | 13.5% | 13.78% | 5.72% | 8.5% | 9.37% | 29.11% | 25.12% | -7.46% | 15.34% | 7.49% | 11.15% | -7.69% | 21.89% |
| Cost of Goods Sold | 45.75B | 44.25B | 41.74B | 42.21B | 50.65B | 50.05B | 46.22B | 47.59B | 47.8B | 42.48B | 39.24B | 41.52B | 45.43B | 86.38B | 92.39B | 97.42B | 95.85B | 87.52B | 89.7B | 78.36B | 69.43B | 66.44B | 60.81B | 53.86B | 41.58B | 33.26B | 34.81B | 29.72B | 27.79B | 24.52B | 25.5B |
| COGS % of Revenue | - | 80.02% | 77.93% | 78.58% | 80.51% | 78.87% | 81.6% | 80.99% | 81.75% | 81.6% | 81.35% | 80.69% | 80.19% | 76.92% | 76.76% | 76.56% | 76.05% | 76.41% | 75.78% | 75.14% | 75.75% | 76.64% | 76.1% | 73.72% | 73.48% | 73.54% | 71.24% | 70.14% | 70.5% | 69.15% | 66.37% |
| Gross Profit | 11.61B | 11.05B | 11.82B | 11.51B | 12.26B | 13.41B | 10.42B | 11.17B | 10.67B | 9.58B | 9B | 9.94B | 11.22B | 25.92B | 27.97B | 29.83B | 30.18B | 27.03B | 28.66B | 25.93B | 22.23B | 20.26B | 19.09B | 19.2B | 15.01B | 11.97B | 14.06B | 12.65B | 11.63B | 10.94B | 12.92B |
| Gross Margin % | 20.21% | 19.98% | 22.07% | 21.42% | 19.49% | 21.13% | 18.4% | 19.01% | 18.25% | 18.4% | 18.65% | 19.31% | 19.81% | 23.08% | 23.24% | 23.44% | 23.95% | 23.59% | 24.22% | 24.86% | 24.25% | 23.36% | 23.9% | 26.28% | 26.52% | 26.46% | 28.76% | 29.86% | 29.5% | 30.85% | 33.63% |
| Gross Profit Growth % | - | -6.52% | 2.69% | -6.16% | -8.53% | 28.65% | -6.71% | 4.7% | 11.39% | 6.45% | -9.47% | -11.42% | -56.71% | -7.34% | -6.22% | -1.17% | 11.67% | -5.71% | 10.55% | 16.64% | 9.75% | 6.09% | -0.57% | 27.94% | 25.42% | -14.87% | 11.12% | 8.78% | 6.29% | -15.32% | 12.31% |
| Operating Expenses | 8.44B | 7.42B | 8B | 8.05B | 7.7B | 8.05B | 6.98B | 7.29B | 6.84B | 6.21B | 5.45B | 6.02B | 6.96B | 18.79B | 39.03B | 20.15B | 18.7B | 16.89B | 18.19B | 17.21B | 15.67B | 16.78B | 14.87B | 16.31B | 16.02B | 10.53B | 10.03B | 8.96B | 8.23B | 7.54B | 9.2B |
| OpEx % of Revenue | - | 13.42% | 14.94% | 14.99% | 12.25% | 12.68% | 12.32% | 12.41% | 11.69% | 11.93% | 11.3% | 11.7% | 12.29% | 16.73% | 32.43% | 15.84% | 14.84% | 14.75% | 15.37% | 16.5% | 17.1% | 19.36% | 18.61% | 22.32% | 28.31% | 23.28% | 20.53% | 21.15% | 20.88% | 21.25% | 23.93% |
| Selling, General & Admin | 5.9B | 5.82B | 5.66B | 5.36B | 5.26B | 5.73B | 4.9B | 5.37B | 5.1B | 4.53B | 3.83B | 4.72B | 5.36B | 13.27B | 13.5B | 13.58B | 12.82B | 11.61B | 13.33B | 12.23B | 11.27B | 11.18B | 10.5B | 11.01B | 9.03B | 7.19B | 7.22B | 6.52B | 5.85B | 5.34B | 6.48B |
| SG&A % of Revenue | - | 10.53% | 10.56% | 9.97% | 8.37% | 9.02% | 8.65% | 9.14% | 8.72% | 8.71% | 7.95% | 9.17% | 9.46% | 11.81% | 11.22% | 10.67% | 10.17% | 10.14% | 11.26% | 11.72% | 12.29% | 12.9% | 13.14% | 15.07% | 15.96% | 15.89% | 14.77% | 15.39% | 14.84% | 15.07% | 16.86% |
| Research & Development | 1.63B | 1.6B | 1.64B | 1.58B | 1.65B | 1.85B | 1.48B | 1.5B | 1.4B | 1.19B | 1.21B | 1.19B | 1.3B | 3.13B | 3.4B | 3.25B | 2.96B | 2.82B | 3.54B | 3.61B | 3.59B | 3.49B | 3.56B | 3.65B | 3.31B | 2.72B | 2.63B | 2.44B | 2.38B | 2.19B | 2.72B |
| R&D % of Revenue | - | 2.9% | 3.06% | 2.94% | 2.63% | 2.91% | 2.61% | 2.55% | 2.4% | 2.29% | 2.51% | 2.31% | 2.29% | 2.79% | 2.82% | 2.56% | 2.35% | 2.46% | 2.99% | 3.46% | 3.92% | 4.03% | 4.46% | 5% | 5.85% | 6.02% | 5.38% | 5.76% | 6.04% | 6.18% | 7.07% |
| Other Operating Expenses | 3M | 0 | 702M | 1.12B | 787M | 473M | 601M | 426M | 335M | 488M | 407M | 109M | 305M | 2.38B | 22.13B | 3.32B | 2.92B | 2.46B | 1.32B | 1.37B | 814M | 2.11B | 808M | 1.64B | 3.68B | 618M | 188M | 0 | 0 | 0 | 0 |
| Operating Income | 3.16B | 3.62B | 3.82B | 3.46B | 4.56B | 5.36B | 3.44B | 3.88B | 3.83B | 3.37B | 3.55B | 3.92B | 4.26B | 7.13B | -11.06B | 9.68B | 11.48B | 10.14B | 10.47B | 8.72B | 6.56B | 3.47B | 4.23B | 2.9B | -1.01B | 1.44B | 4.03B | 3.69B | 3.4B | 3.4B | 3.73B |
| Operating Margin % | 5.51% | 6.55% | 7.13% | 6.43% | 7.25% | 8.44% | 6.08% | 6.6% | 6.55% | 6.47% | 7.36% | 7.62% | 7.51% | 6.35% | -9.19% | 7.61% | 9.11% | 8.85% | 8.85% | 8.36% | 7.16% | 4.01% | 5.29% | 3.96% | -1.79% | 3.18% | 8.24% | 8.7% | 8.62% | 9.6% | 9.7% |
| Operating Income Growth % | - | -5.08% | 10.47% | -24.19% | -14.93% | 55.69% | -11.22% | 1.2% | 13.75% | -5.1% | -9.46% | -7.89% | -40.32% | 164.49% | -214.26% | -15.7% | 13.25% | -3.22% | 20.12% | 32.91% | 88.89% | -17.84% | 45.96% | 386.17% | -170.33% | -64.25% | 9.14% | 8.5% | -0.18% | -8.62% | 4.43% |
| EBITDA | 4.01B | 4.54B | 4.65B | 4.31B | 5.34B | 6.14B | 4.23B | 4.62B | 4.36B | 3.72B | 3.88B | 7.98B | 8.59B | 11.74B | -5.96B | 14.66B | 16.3B | 14.92B | 13.83B | 11.42B | 8.91B | 5.82B | 6.62B | 5.42B | 1.11B | 2.81B | 5.27B | 5B | 4.78B | 4.55B | 5.02B |
| EBITDA Margin % | 6.98% | 8.21% | 8.68% | 8.02% | 8.49% | 9.68% | 7.47% | 7.86% | 7.45% | 7.15% | 8.05% | 15.51% | 15.16% | 10.46% | -4.95% | 11.52% | 12.93% | 13.02% | 11.68% | 10.95% | 9.72% | 6.71% | 8.29% | 7.42% | 1.96% | 6.21% | 10.78% | 11.81% | 12.12% | 12.83% | 13.07% |
| EBITDA Growth % | -5.6% | -2.32% | 7.94% | -19.35% | -13.1% | 45.21% | -8.44% | 6.01% | 17.11% | -4.1% | -51.37% | -7.09% | -26.84% | 296.95% | -140.67% | -10.05% | 9.27% | 7.86% | 21.05% | 28.17% | 53.22% | -12.16% | 22.11% | 389.88% | -60.58% | -46.68% | 5.24% | 4.77% | 4.99% | -9.44% | 6.71% |
| D&A (Non-Cash Add-back) | 847M | 916M | 830M | 850M | 780M | 785M | 789M | 744M | 528M | 354M | 332M | 4.06B | 4.33B | 4.61B | 5.09B | 4.98B | 4.82B | 4.78B | 3.36B | 2.71B | 2.35B | 2.34B | 2.4B | 2.53B | 2.12B | 1.37B | 1.24B | 1.32B | 1.38B | 1.14B | 1.3B |
| EBIT | 3.08B | 3.17B | 3.89B | 3.62B | 4.68B | 7.82B | 3.45B | 2.77B | 3.33B | 3.58B | 4.03B | 3.7B | 4.43B | 8.14B | 9.29B | 11.39B | 12.92B | 10.14B | 10.83B | 9.3B | 6.77B | 5.16B | 4.43B | 3.98B | 2.26B | 2.07B | 4.13B | 3.69B | 3.4B | 3.4B | 3.73B |
| Net Interest Income | -475M | -506M | -607M | -684M | -359M | -254M | -239M | -242M | -312M | -309M | -273M | -167M | -393M | -621M | -876M | -695M | -505M | -721M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | -21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 454M | 506M | 607M | 684M | 359M | 254M | 239M | 242M | 312M | 309M | 273M | 167M | 393M | 621M | 876M | 695M | 505M | 721M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -541M | -956M | -539M | -519M | -235M | 2.21B | -231M | -1.35B | -818M | -92M | 212M | -388M | -393M | -621M | -876M | -695M | -505M | -721M | 0 | 458M | 631M | 70M | -31M | -8M | -40M | -737M | 600M | 506M | 295M | 163M | -32M |
| Pretax Income | 2.62B | 2.67B | 3.28B | 2.94B | 4.32B | 7.57B | 3.21B | 2.52B | 3.01B | 3.28B | 3.76B | 3.53B | 3.86B | 6.51B | -11.93B | 8.98B | 10.97B | 9.41B | 10.47B | 9.18B | 7.19B | 3.54B | 4.2B | 2.89B | -1.05B | 702M | 4.63B | 4.19B | 3.69B | 3.57B | 3.69B |
| Pretax Margin % | 4.57% | 4.83% | 6.12% | 5.47% | 6.87% | 11.93% | 5.67% | 4.29% | 5.15% | 6.29% | 7.8% | 6.86% | 6.82% | 5.8% | -9.91% | 7.06% | 8.71% | 8.22% | 8.85% | 8.8% | 7.85% | 4.09% | 5.25% | 3.95% | -1.86% | 1.55% | 9.46% | 9.9% | 9.37% | 10.06% | 9.61% |
| Income Tax | 69M | 139M | 504M | -326M | 1.19B | 1.03B | 396M | -629M | -2.31B | 750M | 1.09B | -186M | 939M | 1.4B | 717M | 1.91B | 2.21B | 1.75B | 2.14B | 1.91B | 993M | 1.15B | 699M | 349M | -129M | 78M | 1.06B | 1.09B | 1.02B | 1.05B | 1.11B |
| Effective Tax Rate % | 2.63% | 5.21% | 15.37% | -11.1% | 27.57% | 13.57% | 12.33% | -24.93% | -76.8% | 22.89% | 29.11% | -5.27% | 24.31% | 21.46% | -6.01% | 21.24% | 20.17% | 18.64% | 20.47% | 20.85% | 13.81% | 32.32% | 16.66% | 12.08% | 12.26% | 11.11% | 23.01% | 25.99% | 27.5% | 29.51% | 29.99% |
| Net Income | 2.55B | 2.53B | 2.77B | 3.26B | 3.13B | 6.54B | 2.81B | 3.15B | 5.33B | 2.53B | 2.5B | 4.55B | 5.01B | 5.11B | -12.65B | 7.07B | 8.76B | 7.66B | 8.33B | 7.26B | 6.2B | 2.4B | 3.5B | 2.54B | -923M | 624M | 3.7B | 3.49B | 2.94B | 3.12B | 2.59B |
| Net Margin % | 4.45% | 4.57% | 5.18% | 6.07% | 4.98% | 10.31% | 4.97% | 5.36% | 9.11% | 4.85% | 5.17% | 8.85% | 8.85% | 4.55% | -10.51% | 5.56% | 6.95% | 6.69% | 7.04% | 6.97% | 6.76% | 2.77% | 4.38% | 3.48% | -1.63% | 1.38% | 7.56% | 8.24% | 7.47% | 8.79% | 6.73% |
| Net Income Growth % | 1.43% | -8.86% | -14.96% | 4.18% | -52.12% | 132.36% | -10.69% | -40.83% | 110.89% | 1.2% | -45.19% | -9.16% | -1.96% | 140.42% | -278.82% | -19.26% | 14.37% | -8.03% | 14.66% | 17.2% | 158.47% | -31.43% | 37.73% | 375.08% | -247.92% | -83.12% | 5.9% | 18.54% | -5.58% | 20.61% | 6.29% |
| Net Income (Continuing) | 2.55B | 2.53B | 2.77B | 3.26B | 3.13B | 6.54B | 2.81B | 3.15B | 5.33B | 2.53B | 2.67B | 3.72B | 2.92B | 5.11B | -12.65B | 7.07B | 8.76B | 7.66B | 8.33B | 7.26B | 6.2B | 2.4B | 3.5B | 2.54B | -923M | 624M | 3.56B | 3.1B | 2.68B | 2.52B | 2.59B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 836M | 2.09B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 383M | 396M | 387M | 397M | 379M | 332M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.76 | 2.65 | 2.81 | 3.26 | 2.98 | 5.36 | 2.00 | 2.07 | 3.26 | 1.48 | 1.43 | 2.48 | 2.62 | 2.62 | -6.41 | 3.32 | 3.69 | 3.14 | 3.25 | 2.68 | 2.18 | 0.82 | 1.15 | 0.83 | -0.37 | 0.32 | 1.80 | 1.67 | 1.39 | 1.48 | 1.23 |
| EPS Growth % | 5.04% | -5.69% | -13.8% | 9.4% | -44.4% | 168% | -3.38% | -36.5% | 120.27% | 3.5% | -42.34% | -5.34% | 0% | 140.87% | -293.07% | -10.03% | 17.52% | -3.38% | 21.27% | 22.94% | 165.85% | -28.7% | 38.55% | 324.32% | -215.63% | -82.22% | 7.78% | 20.14% | -6.08% | 20.33% | 6.03% |
| EPS (Basic) | - | 2.67 | 2.83 | 3.29 | 3.02 | 5.41 | 2.01 | 2.08 | 3.30 | 1.50 | 1.44 | 2.51 | 2.66 | 2.64 | -6.41 | 3.38 | 3.78 | 3.21 | 3.35 | 2.76 | 2.23 | 0.83 | 1.16 | 0.83 | -0.37 | 0.32 | 1.87 | 1.73 | 1.43 | 1.53 | 1.27 |
| Diluted Shares Outstanding | 925M | 953M | 989M | 1B | 1.05B | 1.22B | 1.42B | 1.52B | 1.63B | 1.7B | 1.74B | 1.84B | 1.91B | 1.95B | 1.97B | 2.13B | 2.37B | 2.44B | 2.57B | 2.72B | 2.85B | 2.91B | 3.06B | 3.06B | 2.5B | 1.97B | 2.08B | 2.1B | 2.14B | 2.11B | 2.1B |
| Basic Shares Outstanding | 922M | 946M | 979M | 992M | 1.04B | 1.21B | 1.41B | 1.51B | 1.61B | 1.69B | 1.73B | 1.81B | 1.88B | 1.93B | 1.97B | 2.09B | 2.32B | 2.39B | 2.48B | 2.63B | 2.78B | 2.88B | 3.02B | 3.05B | 2.5B | 1.94B | 1.98B | 2.02B | 2.07B | 2.05B | 2.1B |
| Dividend Payout Ratio | - | 43.02% | 38.74% | 31.78% | 33.11% | 14.34% | 35.42% | 30.77% | 16.88% | 35.39% | 34.38% | 27.45% | 23.62% | 21.61% | - | 11.93% | 8.8% | 10% | 9.56% | 11.65% | 14.42% | 38.62% | 27.8% | 38.48% | - | 99.52% | 17.26% | 18.62% | 21.22% | 17.06% | 17.4% |
Printing segment margin erosion
According to the latest quarterly filings, HPQ's revenue growth has accelerated to 9.0% in 2026Q2, marking a notable recovery from the negative growth rates observed in early 2024, suggesting a potential stabilization in demand for its core hardware and peripheral product offerings across global markets.
The recent uptick in top-line performance suggests that the company may be benefiting from a cyclical refresh in its Personal Systems segment. Investors should monitor whether this growth is sustainable or merely a reflection of easier year-over-year comparisons following previous periods of contraction.
Based on reported financial figures, HPQ's gross margin has compressed from a peak of 23.6% in 2024Q2 to 20.9% in 2026Q2, indicating that the company faces persistent challenges in maintaining its historical profitability levels amidst a competitive hardware landscape and shifting product mix.
The decline in gross margin suggests that the high-margin printing supplies business may be facing increased pressure from third-party alternatives or a secular shift in usage patterns. This trend warrants further investigation into whether the company's subscription-based initiatives can effectively offset the erosion of traditional transactional margins.
As indicated by the income statement data, operating margins have fluctuated significantly, falling to 4.2% in 2026Q2 from 7.4% in 2024Q2, which suggests that the company is struggling to scale its operating income proportionally with the recent recovery in top-line revenue growth.
The inability to expand operating margins despite revenue growth implies that SG&A and R&D expenses are consuming a larger portion of the gross profit pool. This may indicate that the company is forced to increase spending to defend its market share against aggressive hardware competitors.
Based on the provided data, EPS has exhibited extreme volatility, ranging from $0.42 to $0.92 over the last ten quarters, with stock-based compensation reaching $182 million in 2026Q1, which complicates the assessment of true underlying profitability and shareholder value creation for the firm.
The significant swings in net income suggest that non-operating items or restructuring charges may be distorting the bottom line. Investors should be cautious, as the reliance on share repurchases to drive EPS growth may be masking a lack of consistent operational improvement in the core business.
While management emphasizes the recurring nature of printing supplies, the data shows a clear downward trend in gross margins since 2024, suggesting that the 'razor-and-blade' model may be losing its efficacy as a defensive buffer against broader macroeconomic and industry-specific headwinds.
Short-sellers might focus on the potential for further margin compression if the printing segment continues to underperform. The reliance on this segment for high-margin cash flow makes the company particularly vulnerable to any regulatory or competitive shifts that threaten its proprietary ink and toner ecosystem.
Quick answers to the most common questions about buying HPQ stock.
For fiscal year 2025, HP Inc. (HPQ) reported total revenue of $55.30B. This represents a 43.9% increase compared to $38.42B in 1996.
HP Inc. (HPQ) is profitable, generating $2.53B in net income for the fiscal year ending 2025 with a net profit margin of 4.6%.
HP Inc. (HPQ) reported an operating income of $3.62B, resulting in an operating profit margin of 6.6%. This margin reflects the operational efficiency of the business before interest and taxes.
HP Inc. (HPQ) generated $11.05B in gross profit for the year, representing a gross profit margin of 20.0%. This demonstrates the company's core pricing power and production efficiency.